REGULAR MINUTES

PERE MARQUETTE DEPOT

Tuesday, April 18, 2017

A meeting of the City Council of the City of Belding, Michigan was convened in open and public session at 7:00 p.m. on Tuesday, April 18, 2017.

Council Member Miller delivered the invocation.

The Mayor led the audience in the Pledge of Allegiance.

The City Clerk took the roll call:

Members Present: Council Members Brad Miller, Bruce Meyers, Mike Scheid, Douglas Feehan and Ronald Gunderson

Members Absent: None

Approval of Agenda

Council Member Scheid made a motion to approve the agenda as presented, supported by Council Member Miller.

The question on the motion was called and the result of the voting is as follows:

Ayes: Council Members Miller, Meyers, Scheid, Feehan and Gunderson

Nays: None

Presentation

SAW grant update – David W. Bluhm, Division Manager of F&V

David Bluhm gave a power point presentation. They have been working on the Asset Management Plan, focusing on the wastewater section. They will be finishing the study and putting the GIS in place. The final reports are due to the DEQ at the end of October. All field work has been done, as well as the asset inventory and conditions. A risk analysis was done, which places assets in a timeframe for rehab to get a cost plan. The CIP was done on the wastewater side. Dawn drafted the preliminary rate study. She looked at the 2017 operating conditions to determine if the expenditures were exceeding revenues. The rate adjustment is due May 1, 2017. In the future, a risk analysis and rate study will be done for stormwater. A rate adjustment will not be needed for stormwater, just a CIP. That will be done before October 31. The draft asset management reports will be done in July and August. The GIS will be finalized in August and September for equipment purchases and training. The certifications are to be provided to DEQ by October 31. Invoices can be submitted up to 60 days after that to be paid through the grant. The Asset Management Plan has five components, including asset inventory, level of service, critical assets, rate methodology and capital improvements planning. The Level of Service Statement is fairly comprehensive and would serve Belding well. The rate study will be reviewed, possibly every three years. There are a lot of unknowns. Data is converted into risk and scores are developed to reflect risk. They determine Likelihood of Failure and Consequesnce of Failure from the evaluations that were done. There are five categories of risk. The most critical have the highest risk score. The risk rating categories are extreme, high, medium, low and negligible. The CIP focuses on the extreme and high categories. The extreme category has a one to two year rehab plan. The high category has a medium term rehab plan. The medium, low and negligible categories are in pretty good condition. The recommendation for each asset will be listed in detail. The collection system is in pretty good shape. The manholes are in great shape, with a handful needing to be addressed. Each asset has a detailed line of information. The software will take the asset, identify rehab method and put a cost to it. Point repair, lining and replacement are all methods of rehab. The map shows the entire collection system with the rating system. It shows where each asset is located. The second map shows the rehab action for the assets. The collection system has a draft capital improvement plan. A 5-year plan has been created and the rehab projects have been entered into the software for the year it is projected to be done. Regarding the wastewater treatment plan, they looked at the plant condition, pump stations and force mains. The plant was built in 1965. Some improvements have been done over the years. A risk evaluation was done with the plant, the same as the collection system with the risk basis. High risk items include: influent pressure sewer from M-44 to the WWTP, influent metering structure, non-functioning aerators in Pond 2, HVAC in the Chemical building and the Forcemain at M-44, Stocking & Park Street lift stations. Included in the CIP is the new influent pressure sewer at $2,051,000, the forcemain replacements at $1,008,000, the aeration improvements at $78,000 and the cleaning of Lagoon 1 at $619,000. Beyond the five years for the collection and wastewater treatment plant, the information will be valuable to the community and DPW. Projects will be identified for 6-20 years, but not the costs because that can change. The current wastewater plant is getting very old, and if the DEQ imposes ammonia limits, that plant will not be able to treat for those limits. It would be prudent to look at a type of modification, more of a mechanical system to treat for ammonia. The ponds would still be used. It is a big concern. The NPDES lagoon permit is not due for a few years. They don’t know what will happen, but it should be on the radar screen.

DPW Director stated if it was deemed necessary for the treatment plant to be put in, ponds 1 and 2 would have to be drained and filled.

Mr. Bluhm stated they had talked about improvements and cost. There are $4,844,947 in total improvements, with the biggest year in 2021 at $4,147,592. The rate consultant looked at the current rate conditions, as well as putting away money to address the big ticket items. The revenue gap was determined at $126,000. 10% of the gap must be addressed in first three years of the grant. The remaining gap needs to be filled within the next four years. They want to address the gap and the CIP. A five year financial projection was done for the needs to keep the utility financially sound and plan for capital improvements. The current rates don’t support the current operations of the utility. For the debt coverage ratio, if the city plans to bond for big projects, the utility has to be healthy for that. The debt coverage ratio should be over 1.0. Now they are increasing rates 3%, which is good financial planning, but that will not be enough. She looked at the shortfall and planning for a capital project and recommended rates that would cover inflationary costs and save for improvements. A 5.9% increase covers the increase in cash flow for operations and the capital improvements needed from the conditions they see to keep the system healthy. It gets the debt coverage ratio above 1, which is a good solid utility to be able to borrow money. They need to look for grants and loans. They looked at the increases on a quarterly and monthly basis.

Public Comments

Joe Feuerstein, 901 W. State, asked if the 5% raise would be on sewer or water?

Finance Director Schlienz stated it would be 3% on water and 5.9% on sewer.

Mr. Feuerstein stated that was crazy, because in ten years, it will be $300-$350 for the water bill. He asked who would pay that?

Mayor Gunderson stated DEQ will mandate that the gap be filled and they must cover future problems. There is no choice.

Mr. Feuerstein stated they should have a special assessment for sewer on the taxes and keep the water bills down. It is simple. Do it.

Consent Agenda

Approve Independent Bank Check 68082 in the amount of $2,514.00 and Checks 68083 to 68156 in the amount of $81,329.01.

Approve Chemical Bank Check 7076 in the amount of $2,654.71

Approve Minutes: Regular scheduled meeting, April 4, 2017
Zoning Board of Appeals – Reappointment of John Sparks

Council Member Scheid made a motion to approve the consent agenda, supported by Council Member Feehan.

The question on the motion was called and the result of the voting is as follows:

Ayes: Council Members Miller, Meyers, Scheid, Feehan and Gunderson

Nays: None

Following are the resolutions contained in the Consent Agenda.

C. Zoning Board of Appeals – Reappointment of John Sparks

RESOLUTION NO. 2017-04-28

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN

REAPPOINTING JOHN SPARKS TO THE ZONING BOARD OF APPEALS.

WHEREAS, the term of office on the Zoning Board of Appeals for John Sparks has expired; and

WHEREAS, John Sparks has indicated his willingness to continue to serve on the Zoning Board of Appeals.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that John Sparks be reappointed to the Zoning Board of Appeals with a term to expire on April 18, 2020.

Proclamation

Arbor Day Proclamation

WHEREAS, in 1872, J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day be set aside for the planting of trees; and

WHEREAS, this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska, and Arbor Day is now observed throughout the nation and the world; and

WHEREAS, trees reduce the erosion of our precious topsoil by wind and water, cut heating and cooling costs, moderate the temperature, clean the air, produce oxygen and provide habitat for wildlife, and

WHEREAS, trees are a renewable resource giving us paper, wood for our homes, fuel for our fires and countless other wood products; and

WHEREAS, trees in our city increase property values, enhance the economic vitality of business areas, and beautify our community, and

WHEREAS, trees, wherever they are planted, are a source of joy and spiritual renewal; and

WHEREAS, the City of Belding has been recognized as a Tree City USA by The National Arbor Day Foundation for the thirteenth year and desires to continue its tree-planting practices.

NOW, THEREFORE, I, Ronald Gunderson, Mayor of the City of Belding, do hereby proclaim April 28, 2017 as Arbor Day in the City of Belding, and urge all citizens to celebrate Arbor Day and to support efforts to protect our trees and woodlands, and

FURTHER, I urge all citizens to plant trees to gladden the heart and promote the well-being of this and future generations.

Reports by Council Liaisons

Council Member Miller stated the Historic District Commission is meeting this Thursday and the Planning Commission is meeting next week.

Council Member Meyers stated the Rec Board met on March 13 and will meet again on May 8. The ZBA will meet on April 25 at 6 p.m.

Council Member Scheid stated the Housing Commission met last Thursday. There was not a quorum. They discussed the budget and will send it in to HUD.

Council Member Feehan had no update.

Mayor Gunderson had no meetings.

Unfinished Business

There was no unfinished business.

New Business

A. MDEQ Core Component of Asset Management Plan – Level of Service Statement

The City Clerk read the preamble to the resolution.

Council Member Feehan moved the passage of the resolution and the motion was supported by Council Member Scheid.

RESOLUTION NO. 2017-04-29

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN APPROVING THE WASTEWATER UTILITY LEVEL OF SERVICE STATEMENT, A CORE COMPONENT OF THE ASSET MANAGEMENT PLAN.

WHEREAS, the City of Belding received funding through the MEDQ Stormwater, Asset Management, and Wastewater (SAW) Grant Program to develop Wastewater and Stormwater Asset Management Plans; and

WHEREAS, one of the MDEQ Core Components of the Asset Management Plan is a Level of Service Statement; and

WHEREAS, the Belding City Council wishes to adopt the following Level of Service Statement:

To provide reliable wastewater collection and treatment services at a minimum cost, consistent with applicable environmental and health regulations. To achieve this the following Level of Service (LOS) goals are proposed for the City of Belding:

Provide adequate wastewater collection and treatment capacity for all service areas.
Comply with all local, state and federal regulations at all times for treated effluent from the WWTP.
Actively maintain collection and treatment system assets in reliable working condition.
Reduce inflow/infiltration (I/I) flow volumes to mitigate potential for sanitary overflows, water in basements, and overloading of treatment plant.
Provide rapid and effective emergency response services to customers.
Ensure operations staff are properly certified.
Regularly review health and safety for operations staff to provide proper worker safety.
Regularly review projected O&M and capital expenditures. Adjust user rates, as necessary, to ensure sound financial management of wastewater system.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that the Level of Service Statement is hereby adopted.

The question on the resolution was called and the result of the voting is as follows:

Ayes: Council Members Miller, Meyers, Scheid, Feehan and Gunderson

Nays: None

B. Water and Sewer Rate Adjustments

The City Clerk read the preamble to the resolution.

Council Member Feehan moved the passage of the resolution and the motion was supported by Council Member Meyers.

RESOLUTION NO. 2017-04-30

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN ESTABLISHING RATES TO BE CHARGED FOR WATER AND SEWAGE DISPOSAL SERVICE IN THE CITY OF BELDING.

WHEREAS, pursuant to Section 86-172 of Chapter 86 of the City Code of the City of Belding, the City Council of the City of Belding, Michigan may from time to time review, modify, and revise the rates to be charged for water and sewage disposal service in the City of Belding; and,

WHEREAS, City Staff has completed a water and sewer rate analysis and made recommendations to the Belding City Council for revisions in current rates to be charged for water and sewer disposal services provided by the City of Belding; and,

WHEREAS, the City Council of the City of Belding, Michigan has reviewed the current rates to be charged for water and sewer disposal service in the City of Belding and desires to establish a new rate schedule.

NOW THEREFORE BE IT RESOLVED by the City Council of the City of Belding, Michigan that the following rates shall be charged for water and sewage disposal service in the City of Belding for Fiscal Years 2017/18 – 2019/20 as outlined below, and that said rates shall become effective with the June 2017 billing and the annual adjustments shall take effect on the July billings of each subsequent year.

WATER

Effective

Water Fees

Date

FY 17/18

Commodity Charges

First 1,000 Cubic Feet

1.07

per 100 Cubic feet

6/30/17 billing

Next 19,000 Cubic Feet

1.55

per 100 Cubic feet

6/30/17 billing

Next 80,000 Cubic Feet

0.86

per 100 Cubic feet

6/30/17 billing

Over 100,000 Cubic Feet

0.76

per 100 Cubic feet

6/30/17 billing

FY 18/19

Commodity Charges

First 1,000 Cubic Feet

1.10

per 100 Cubic feet

6/30/18 billing

Next 19,000 Cubic Feet

1.59

per 100 Cubic feet

6/30/18 billing

Next 80,000 Cubic Feet

0.88

per 100 Cubic feet

6/30/18 billing

Over 100,000 Cubic Feet

0.78

per 100 Cubic feet

6/30/18 billing

FY 19/20

Commodity Charges

First 1,000 Cubic Feet

1.13

per 100 Cubic feet

6/30/19 billing

Next 19,000 Cubic Feet

1.63

per 100 Cubic feet

6/30/19 billing

Next 80,000 Cubic Feet

0.90

per 100 Cubic feet

6/30/19 billing

Over 100,000 Cubic Feet

0.80

per 100 Cubic feet

6/30/19 billing

Readiness to Serve Charges

FY 17/18

FY 18/19

FY 19/20

5/8 "

22.71

23.40

24.11

31.72

32.68

33.66

1 1/4"

36.28

37.37

38.50

1 1/2"

40.84

42.07

43.34

65.88

67.86

69.90

249.74

257.24

264.96

317.64

327.17

336.99

476.45

490.75

505.48

657.87

677.61

697.94

10"

850.85

876.38

902.68

Additional apartments, trailers or commercial units on a master meter shall pay a quarterly readiness to serve charge for the master meter plus 0.75 times the 3/4" x 5/8" quarterly meter charge per each additional unit.

0.75

FY 17/18

17.02

FY 18/19

17.53

FY 19/20

18.06

SEWER

Sewer Fees

FY 17/18

Commodity Charges

Commodity Charge: Each 100 Cubic Feet

3.17

per 100 Cubic feet

6/30/17 billing

FY 18/19

Commodity Charges

Commodity Charge: Each 100 Cubic Feet

3.36

per 100 Cubic feet

6/30/18 billing

FY 19/20

Commodity Charges

Commodity Charge: Each 100 Cubic Feet

3.56

per 100 Cubic feet

6/30/19 billing

Readiness to Serve Charges

FY17/18

FY 18/19

FY 19/20

5/8 "

41.10

43.55

46.11

57.46

60.88

64.45

1 1/4"

65.74

69.65

73.75

1 1/2"

73.92

78.32

82.92

119.17

126.26

133.68

451.70

478.57

506.71

574.90

609.10

644.91

862.30

913.60

967.31

1,190.80

1,261.64

1,335.81

10"

1,539.79

1,631.40

1,727.31

0.75

FY 17/18

30.02

FY 18/19

30.92

FY 19/20

31.85

Council Member Meyers stated there is not a bad thing about the SAW grant, as they must be aware of what they must do and continue on. It is a really good thing and they should look forward to it. No one likes rate increases. He feels it is fair to have an increase on the amount of water you use from the system personally. They must continue to stay on top of these things, as it is their responsibility.

Mayor Gunderson stated they find out by taking it on to find out what the infrastructure is like. They are taking the recommendations from the DEQ on the rate increases. They have to correct the situation. The two mills Council Member Scheid talked about previously was not to fund expenses from the Electrolux property.

Council Member Scheid stated they always go after the taxpayer for more and more. They talked about raising the millage again. Stuff must happen. They had the rate increase set up last year, but now have to change it. Expenses go up, but are they overtaxing the community for the utility raises they are getting? The city always has something every year. They have to watch the spending on other things. They have the welfare of the citizens in mind on the water and sewer improvements, but they have to find a medium to keep people in the town happy as they pay the bills. They have to be careful on what they are doing. They need more businesses in town, as there is good property. They have to get the population up and growing.

Mayor Gunderson stated they are already stretched far on services. He looks at all the bill registers. They want to be fiscally responsible, but they want to promote people to stay here who are making industrial improvements with an abatement. He doesn’t know where they can cut anymore or cut back on services. They don’t have a choice with what DEQ has presented. With a plan set in place, that takes some of the pressure off.

Council Member Meyers stated as they go, there will be more frank discussions. With pushing needed improvements out further and further, more stuff will come up. They need a long term plan for all the budgets in the city. Unless they have a different revenue stream, how will it be paid for? If they are not raising taxes or fees, what don’t they want? Those are discussions to be had.

The question on the resolution was called and the result of the voting is as follows:

Ayes: Council Members Miller, Meyers, Scheid, Feehan and Gunderson

Nays: None

C. Tentative FY 2017/18 Budget Adoption

The City Clerk read the preamble to the resolution.

Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Miller.

RESOLUTION NO. 2017-04-31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN ADOPTING THE FY 2017/18 TENTATIVE BUDGET.

WHEREAS, the City Council has reviewed the FY 2017/18 Tentative Budget; and,

WHEREAS, the City of Belding's budget ordinance requires that the tentative budget be adopted; and,

WHEREAS, a public hearing on the proposed budget will be set for May 2, 2017.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that the FY 2017/18 Tentative Budget is hereby adopted.

An additional 2.9% for sewer rates will be added to the budget.

Council Member Feehan stated he had asked about billing insurance companies $500 on fires, and billing EMS for non-emergency calls the fire department runs on.

City Manager Brown stated he would find out more information.

Council Member Miller asked if the 2.9% would go into the Sewer Fund?

Finance Director Schlienz stated it would go to 608.

Council Member Scheid stated there are vacant properties around the town that the city owns. He asked why the city doesn’t unload the properties? Sell them or give it to them to put a house in. The other people moving in and out are just replacements. The city spends money to maintain the properties. They must generate money, too.

City Manager Brown will get an inventory.

The question on the resolution was called and the result of the voting is as follows:

Ayes: Council Members Miller, Meyers, Scheid, Feehan and Gunderson

Nays: None

Public Comments

Denny Craycraft wished to give an update on the wall. From Veteran’s Day to Memorial Day this year, he has been working on Phase 5 with the names on the wall. He is raising $40,000 to put the names on. He was dropping off the brick orders and looked at the panels, which are nothing less than the wall of Washington, DC. They will set it up in the next couple of weeks. The five pillars are up. He had seven pillars for Greenville, but has not had much luck with sponsorships. A month ago, he was on eightWest and a lady called from Saugatuck. He brother had been killed and she wrote out a check for $3,500. She was calling people and got a $1,200 donation from a Colorado Springs friend. Vicky Korson of Korson Tree Farms committed to $10,000. Things are moving. There is a commitment from Meijers for $500. On May 13, there will be a poker run sponsored by the Eagles. $1,100 was raised last year. A program was held at the museum which went well and raised $1,100 in donations. This Memorial Day there will be a program at noon at the wall. He ordered 500 cards for the dedication. They will have a crowd on Labor Day. There will be a drawing in St. Louis in a couple of weeks. Some VFW Posts are talking about having buses come down. He hopes council will all be there. He will give them an invitation. The State Honor Guard is coming in. Brian Calley may attend. They will do lighting on the inside of the wall.

Dave Hodges, Ionia County Commissioner, stated a resolution was passed authorizing water and sewer improvement bonds in Ionia. The city does the bonds through a partnership with the county at a better rate. The city could check into it with Jason. They are bonding $8M for street and water and sewer improvements. Prosecutor Kyle Butler has asked for a replacement for the Assistant Prosecutor who is leaving. The Health Department will fill a couple positions. A waiver was done on the license fee for a service dog. Today the committee of the whole met to hear reports. Community Mental Health gave an annual report and will have a nice addition for autistic children. Belding got funding for the project because they have a certified person working there with a rare certification. There are three out there with the certification. The ground breaking will be held on May 12. They will service Montcalm, Ionia and a portion of Kent County. Building Code came in with 111 permits this year. The Commission on Aging always has vehicles in Belding. They provide 72,000 meals a year. They coordinate the SPF coupon distribution for fresh fruits and vegetables from the farmers markets. They provide in home services and transportation trips. In the Juvenile Probate Court, the numbers are way down for crime. For Building and Grounds, the ground breaking ceremony will be next Monday at 2 p.m.

City Manager Comments

City Manager Brown stated it was good to be back.

Council Comments

Council Member Meyers thanked Bruce for the prompt answers to questions. He also thanked the rest of the city staff who are always polite.

Council Member Scheid had no comments.

Council Member Feehan stated he heard a lot of comments about the tornado warning, which came out eleven minutes after the time it came out on TV. The sirens went off when they were cancelling the tornado warnings. He asked why they went through the county instead of getting it back to the fire department? It was always tone activated through a radio system. He would like to see it put back in the hands of the city. They talked about the kayak launch. That should be put in the Rec Boards hands to determine a location and bring it back.

Mayor Gunderson stated maybe they could get one for Water Street.

Council Member Feehan stated he has been hearing from board members that they are not used as they should be.

Council Member Miller stated his wife sent a picture from eightWest to him at work regarding Denny’s appearance on the program. The infrastructure is the foundation of the city and there is a cost. They should look at the overall budgets to prepare for things. If there was a catastrophic failure, they are responsible and it would be on their shoulders.

Mayor Gunderson stated Al Hartley passed away, who was the city manager from February, 1993 to November, 1995. He attended a seminar to help increase his way of thinking on what has to be done for any situation. With what they had to deal with tonight, he knows the department heads take things home to think about and the city dodges the bullet. It is not easy sitting up here. The city has services and it is their job to take care of that and they will continue to do it. He thanked Bruce for coming back.

City Manager Brown stated a week from Friday night at 6 p.m. the dedication of the clock and sign from the Leppink family will take place. It will be a nice event with coffee and cake afterwards.

Adjournment

Council Member Scheid moved to adjourn the meeting, supported by Council Member Feehan.

Ayes: Council Members Miller, Meyers, Scheid, Feehan and Gunderson

Nays: None

The Mayor adjourned the meeting at 8:41 p.m.

Ronald Gunderson, Mayor

Kareen J. Thomas, City Clerk